If you are searching for short sales articles you will probably have no trouble finding them. In today's real estate market the short sale has become more and more popular and are being initiated by many banks as well as many home owners looking to prevent a foreclosure. These types of sales can offer great opportunities, however there are a number of pitfalls as well.
Short selling, in short, is selling a house or a piece of property for less than what is owned on the loan. Many people look to the short sale as a way to sell their house when, as a result of the economy and the real estate market, it is no longer worth the value of the loan. The final price must be agreed to by the bank holding the mortgage.
Consider the purchase of a home 5 years ago before the real estate bubble burst. Assume this house was purchased for 500 thousand dollars, however as the market has taken a hit in recent years, the house is now worth only half that on the MLS. The owner of the home is likely to own the bank far more than what the house is now worth and wishes to sell. The bank must decide how much it is willing to sell the house for, and the owner is then often times responsible for the remainder.
For those looking for a fantastic value on a home purchase, a short sale can be just the ticket. Still many or most of these homes are sold with no offer for repairs, and quite a few are in need. Those without the ability to do these repairs will have to pay for them, and this cost must be considered before the real saving is calculated.
What's more is that these types of transactions typically take longer than otherwise normal ones. There is more bargaining and paperwork, and the banks, who determine the final numbers, are frequently slow to deal with. The extra time it takes to close a loan of this type should be considered by anyone looking to try a short sale.
More people seem to be losing their jobs and their steady income, and this is resulting in more and more short sells on the market. Many of these current owners would prefer to take a loss than to fall in to foreclosure and suffer the ramifications that follow.
As can be seen, the short sale can offer great benefits to both the buyer and the seller assuming both have the willingness and the ability to be patient. And for more information, short sales articles are generally only a click away.
Short selling, in short, is selling a house or a piece of property for less than what is owned on the loan. Many people look to the short sale as a way to sell their house when, as a result of the economy and the real estate market, it is no longer worth the value of the loan. The final price must be agreed to by the bank holding the mortgage.
Consider the purchase of a home 5 years ago before the real estate bubble burst. Assume this house was purchased for 500 thousand dollars, however as the market has taken a hit in recent years, the house is now worth only half that on the MLS. The owner of the home is likely to own the bank far more than what the house is now worth and wishes to sell. The bank must decide how much it is willing to sell the house for, and the owner is then often times responsible for the remainder.
For those looking for a fantastic value on a home purchase, a short sale can be just the ticket. Still many or most of these homes are sold with no offer for repairs, and quite a few are in need. Those without the ability to do these repairs will have to pay for them, and this cost must be considered before the real saving is calculated.
What's more is that these types of transactions typically take longer than otherwise normal ones. There is more bargaining and paperwork, and the banks, who determine the final numbers, are frequently slow to deal with. The extra time it takes to close a loan of this type should be considered by anyone looking to try a short sale.
More people seem to be losing their jobs and their steady income, and this is resulting in more and more short sells on the market. Many of these current owners would prefer to take a loss than to fall in to foreclosure and suffer the ramifications that follow.
As can be seen, the short sale can offer great benefits to both the buyer and the seller assuming both have the willingness and the ability to be patient. And for more information, short sales articles are generally only a click away.
About the Author:
For more information from Corkie Manolaw you can view her Real Estate North Logan Utah website.
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